WGU D322 INFORMATION SYSTEMS MANAGEMENT EXAM
QUESTIONS AND 100% ACCURATE ANSWERS
300 QUESTIONS AND ANSWERS
1. What are the three fundamental components of an information system?
Answer: Hardware, software, and data/people/processes (the sociotechnical
approach emphasizes people and processes as equally important)
2. What is the difference between data and information? Answer: Data are
raw facts and figures; information is processed data that has meaning and
context for decision-making
3. Which type of information system supports day-to-day operational
activities? Answer: Transaction Processing Systems (TPS)
4. What does ERP stand for and what is its primary purpose? Answer:
Enterprise Resource Planning; integrates business processes across departments
using a common database
5. What is the primary goal of a Management Information System (MIS)?
Answer: To provide managers with reports and summaries for tactical decision-
making
6. Which information system supports strategic decision-making? Answer:
Executive Support Systems (ESS) or Executive Information Systems (EIS)
7. What is a Decision Support System (DSS)? Answer: An interactive system
that helps managers make semi-structured decisions using data analysis and
modeling
8. What does SCM stand for in information systems? Answer: Supply Chain
Management
9. What is the purpose of Customer Relationship Management (CRM)
systems? Answer: To manage and analyze customer interactions and data
throughout the customer lifecycle
,10. What is Business Intelligence (BI)? Answer: Technologies and processes
for collecting, storing, analyzing, and providing access to data to help users
make better business decisions
11. What is the difference between structured and unstructured decisions?
Answer: Structured decisions are routine and repetitive with clear procedures;
unstructured decisions are novel and complex with no established procedures
12. What is a Knowledge Management System (KMS)? Answer: A system
that captures, stores, and distributes knowledge and expertise within an
organization
13. What does B2B stand for in e-commerce? Answer: Business-to-Business
14. What does B2C stand for in e-commerce? Answer: Business-to-
Consumer
15. What is enterprise architecture? Answer: A blueprint that defines the
structure and operation of an organization's IT systems and their relationship to
business processes
16. What is the purpose of an Enterprise Service Bus (ESB)? Answer: To
provide a communication layer that allows different applications to
communicate with each other
17. What is Service-Oriented Architecture (SOA)? Answer: An architectural
approach where business functionality is provided through loosely coupled,
reusable services
18. What is cloud computing? Answer: The delivery of computing services
over the internet, including servers, storage, databases, and software
19. What are the three main cloud service models? Answer: Infrastructure as
a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS)
20. What is virtualization in IT? Answer: Creating virtual versions of physical
computing resources like servers, storage, or networks
21. What is the difference between efficiency and effectiveness in IS?
Answer: Efficiency is doing things right (minimizing resource use);
effectiveness is doing the right things (achieving goals)
22. What is systems thinking? Answer: A holistic approach that focuses on the
way that systems' constituent parts interrelate and how systems work over time
23. What is a legacy system? Answer: An older computer system or
technology that remains in use despite newer alternatives being available
, 24. What is digital transformation? Answer: The integration of digital
technology into all areas of business, changing how organizations operate and
deliver value
25. What is the Internet of Things (IoT)? Answer: A network of
interconnected devices that can collect and exchange data over the internet
Chapter 2: Strategic Use of Information Systems (Questions 26-50)
26. What is Porter's Five Forces model used for? Answer: Analyzing the
competitive environment of an industry to develop business strategy
27. Name the five forces in Porter's Five Forces model. Answer: 1) Threat of
new entrants, 2) Bargaining power of suppliers, 3) Bargaining power of buyers,
4) Threat of substitute products, 5) Rivalry among existing competitors
28. What is a competitive advantage? Answer: An advantage gained over
competitors by offering consumers greater value or lower prices
29. What are Porter's three generic strategies? Answer: Cost leadership,
differentiation, and focus (niche)
30. What is IT strategic alignment? Answer: The degree to which IT strategy
supports and shapes business strategy
31. What is a value chain? Answer: A series of activities that organizations
perform to deliver valuable products or services to customers
32. What are primary activities in the value chain? Answer: Inbound
logistics, operations, outbound logistics, marketing and sales, and service
33. What are support activities in the value chain? Answer: Firm
infrastructure, human resource management, technology development, and
procurement
34. What is business process reengineering (BPR)? Answer: The radical
redesign of business processes to achieve dramatic improvements in
performance
35. What is the difference between automation and transformation using
IT? Answer: Automation uses IT to speed up existing processes; transformation
uses IT to fundamentally change how work is done
36. What is first-mover advantage? Answer: The competitive advantage
gained by being the first to enter a market or use a new technology
QUESTIONS AND 100% ACCURATE ANSWERS
300 QUESTIONS AND ANSWERS
1. What are the three fundamental components of an information system?
Answer: Hardware, software, and data/people/processes (the sociotechnical
approach emphasizes people and processes as equally important)
2. What is the difference between data and information? Answer: Data are
raw facts and figures; information is processed data that has meaning and
context for decision-making
3. Which type of information system supports day-to-day operational
activities? Answer: Transaction Processing Systems (TPS)
4. What does ERP stand for and what is its primary purpose? Answer:
Enterprise Resource Planning; integrates business processes across departments
using a common database
5. What is the primary goal of a Management Information System (MIS)?
Answer: To provide managers with reports and summaries for tactical decision-
making
6. Which information system supports strategic decision-making? Answer:
Executive Support Systems (ESS) or Executive Information Systems (EIS)
7. What is a Decision Support System (DSS)? Answer: An interactive system
that helps managers make semi-structured decisions using data analysis and
modeling
8. What does SCM stand for in information systems? Answer: Supply Chain
Management
9. What is the purpose of Customer Relationship Management (CRM)
systems? Answer: To manage and analyze customer interactions and data
throughout the customer lifecycle
,10. What is Business Intelligence (BI)? Answer: Technologies and processes
for collecting, storing, analyzing, and providing access to data to help users
make better business decisions
11. What is the difference between structured and unstructured decisions?
Answer: Structured decisions are routine and repetitive with clear procedures;
unstructured decisions are novel and complex with no established procedures
12. What is a Knowledge Management System (KMS)? Answer: A system
that captures, stores, and distributes knowledge and expertise within an
organization
13. What does B2B stand for in e-commerce? Answer: Business-to-Business
14. What does B2C stand for in e-commerce? Answer: Business-to-
Consumer
15. What is enterprise architecture? Answer: A blueprint that defines the
structure and operation of an organization's IT systems and their relationship to
business processes
16. What is the purpose of an Enterprise Service Bus (ESB)? Answer: To
provide a communication layer that allows different applications to
communicate with each other
17. What is Service-Oriented Architecture (SOA)? Answer: An architectural
approach where business functionality is provided through loosely coupled,
reusable services
18. What is cloud computing? Answer: The delivery of computing services
over the internet, including servers, storage, databases, and software
19. What are the three main cloud service models? Answer: Infrastructure as
a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS)
20. What is virtualization in IT? Answer: Creating virtual versions of physical
computing resources like servers, storage, or networks
21. What is the difference between efficiency and effectiveness in IS?
Answer: Efficiency is doing things right (minimizing resource use);
effectiveness is doing the right things (achieving goals)
22. What is systems thinking? Answer: A holistic approach that focuses on the
way that systems' constituent parts interrelate and how systems work over time
23. What is a legacy system? Answer: An older computer system or
technology that remains in use despite newer alternatives being available
, 24. What is digital transformation? Answer: The integration of digital
technology into all areas of business, changing how organizations operate and
deliver value
25. What is the Internet of Things (IoT)? Answer: A network of
interconnected devices that can collect and exchange data over the internet
Chapter 2: Strategic Use of Information Systems (Questions 26-50)
26. What is Porter's Five Forces model used for? Answer: Analyzing the
competitive environment of an industry to develop business strategy
27. Name the five forces in Porter's Five Forces model. Answer: 1) Threat of
new entrants, 2) Bargaining power of suppliers, 3) Bargaining power of buyers,
4) Threat of substitute products, 5) Rivalry among existing competitors
28. What is a competitive advantage? Answer: An advantage gained over
competitors by offering consumers greater value or lower prices
29. What are Porter's three generic strategies? Answer: Cost leadership,
differentiation, and focus (niche)
30. What is IT strategic alignment? Answer: The degree to which IT strategy
supports and shapes business strategy
31. What is a value chain? Answer: A series of activities that organizations
perform to deliver valuable products or services to customers
32. What are primary activities in the value chain? Answer: Inbound
logistics, operations, outbound logistics, marketing and sales, and service
33. What are support activities in the value chain? Answer: Firm
infrastructure, human resource management, technology development, and
procurement
34. What is business process reengineering (BPR)? Answer: The radical
redesign of business processes to achieve dramatic improvements in
performance
35. What is the difference between automation and transformation using
IT? Answer: Automation uses IT to speed up existing processes; transformation
uses IT to fundamentally change how work is done
36. What is first-mover advantage? Answer: The competitive advantage
gained by being the first to enter a market or use a new technology
